Credit cards have become an integral part of the modern economy. Considered as a flexible way to manage money, these cards require tricks, planning and mental balance to get great rewards. Their use can be either atrocious or admirable and depends totally on the way you use them. There have been numerous cases suggesting the hazardous effects of credit cards. The main reason behind all these were improper use of this financial facility. One must know the proper use of these cards to generate value for their money and take things in their stride. To make no errors with your credit card, you must know the ground rules and realities. If you are a first time credit card user then check the tips below.
Tips to save first time credit card users from making mistakes:
First time credit card users may enjoy the ease of spending money but they should be aware about the pit falls too. They cannot take the liberty of spending as much money as they want because it will end up in high interest and other charges which gets reflected in their monthly bill. Many such small mistakes may leave you with heavy bills and no peace of mind. Find here some tips that will educate you in managing money with your first credit card.
Follow the rules: Along with the credit card, you will get the disclosure giving details about the credit limit, interest rates, additional fees and more. Read it carefully and know all the rules so that you don’t end up paying extra on charges that are easy to avoid. You should also keep an eye on the terms and conditions which can get updated anytime and so, read all mails you receive from the company- Ignoring them can put you in a fix!
Guard your card information: Make sure you keep your card information secure and safe. Leaving your wallet or bag containing the card unattended can be a big risk. Next thing that exposes your card information is online shopping. Make purchases only from sites that are highly secure. You should not give your card information through chats or emails. Leakage of your card information will leave a big hole in your pocket. So, better keep it safe and away from deceitful hands.
Say no to overspending: Keep your credit card limit in mind. Spend within that limit. If you spend more, than the company would not cut you off but, will charge higher interest on the extra money borrowed. Ultimately, everything will go from your pocket, either in terms of money or in terms of interest. To avoid paying extra charges, just spend within your budget.
Avoid cash withdrawals through credit card: When you withdraw money through your credit card then you get charged with high transfer fees and huge interest rates. So, use this facility for emergencies only. It becomes a habit then you will end up getting huge bills.
Keep an eye on the monthly statement: You should always check your monthly statement sent by your credit card companies. It gives all details about monetary transactions that have happened on your card. You will know if any fraudulent transactions are occurring through your card. It is also one of the easiest way to catch identity theft. Tiny charges imposed by scam artists can also be figured out through the statement.
Choose due date: Credit card companies give you an option to choose your due date for repayment. Choose a date that falls after your pay day so that you can easily pay the bill as your pocket will be full.
Timely repayment: If you do not pay your bills on time then interest and late fees will be imposed on the card. In the end, you will have to pay a big fat bill. To avoid this, make sure you pay bills on time.
To sum up, if you just avoid these small yet important pitfalls while using your credit card then it would be easier to manage your money.
Do not make a series of errors to learn to use the credit card efficiently. Just avoid the above mentioned points and be watchful of your card transactions to avoid frauds of any kind. For more details, check our credit card guides.